Thursday, Jul 22, 2010

Does quantitative easing result in inflation in all cases

Gold subject: The bitter irony of quantitative easing

There appears to be a glaring misconception floating around, namely, that deflation is impossible in a fiat-money system, on the grounds that there is no limit, in principle, to how much new money a government can create, and that therefore deflation can always be kept at bay with quantitative easing. This is completely wrong: quantitative easing exacerbates deflation in the very assets that governments were hoping to inflate.

Posted by fuzzy @ 06:39 PM (215 views) Add Comment

No comments have been submitted.

Be the first person to add your comment by completing the form below.

Add comment

Username   Admin Password (optional)
Email Address
Comments
  • If you do not have an admin password leave the password field blank.
  • If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Main Blog | Archive | Add Article | Blog Policies